Paychex (PAYX) FY2016 results: revenue $3.0 billion, up 7.7% on the year
Paychex Inc. (PAYX) reported revenue of $3.0 billion for fiscal 2016, the year ended 31 May 2016, up 7.7% on the year before. Net income was $757 million, up 12.1%, and diluted earnings per share $2.09. The figures are the company's own, from the 10-K it filed with the SEC on 22 July 2016.
Revenue
$3.0 billion
+7.7% on the year
FY2009FY2016
Operating margin
38.8%
38.5% a year earlier
FY2009FY2016
Net income
$757 million
+12.1% on the year
FY2009FY2016
Diluted EPS
$2.09
+13.0% on the year
FY2009FY2016
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Revenue
2,952
2,740
2,519
+7.7%
Selling, general and administrative
948
878
804
+8.0%
Operating income
1,147
1,054
983
+8.8%
Operating margin
38.8%
38.5%
39.0%
Interest expense
1.1
0.7
1.1
+57.1%
Pre-tax income
1,151
1,060
988
+8.6%
Income tax
394
385
361
+2.4%
Effective tax rate
34.3%
36.3%
36.5%
Net income
757
675
628
+12.1%
Net margin
25.6%
24.6%
24.9%
Diluted EPS
$2.09
$1.85
$1.71
+13.0%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Operating cash flow
1,018
895
881
+13.7%
Capital expenditure
97.7
103
84.1
-5.0%
Free cash flow
920
792
797
+16.2%
Free cash flow margin
31.2%
28.9%
31.6%
Cash from investing
-63.1
n/a
-316
Cash from financing
-994
n/a
-520
Depreciation and amortisation
115
107
105
+8.0%
Share-based compensation
34.6
31.4
26.3
+10.2%
Buybacks
108
182
250
-40.8%
Dividends paid
606
552
511
+9.9%
Dividend per share
$1.68
$1.52
$1.40
+10.5%
Diluted shares, weighted
362m
365m
366m
-0.6%
Shares outstanding at period end
360m
361m
363m
-0.2%
Balance sheet
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Shareholders' equity
1,912
1,786
1,777
+7.1%
Debt
0.0
0.0
0.0
Other liabilities
4,529
4,682
4,593
-3.3%
Total liabilities and equity
6,441
6,468
6,370
-0.4%
Fixed assets
353
354
342
-0.3%
Goodwill
657
562
540
+17.0%
Intangible assets
69.5
32.4
40.6
+114.5%
Investments
662
766
784
-13.7%
Cash and equivalents
132
170
152
-22.6%
Receivables
n/a
177
149
Other assets
4,568
4,407
4,361
+3.7%
Total assets
6,441
6,468
6,370
-0.4%
10-K for the year ended 31 May 2016, filed 22 July 2016: the filing.